Renault SA (RNLSY) AI Stock Analysis

Renault SA

(Other OTC:RNLSY)

Select Model

Rating:58Neutral

Price Target:$6.00▼(-2.60% Downside)

Action:reiterated

Date:08/04/26

Financial weaknesses, including net losses and high leverage, weigh heavily on the score, while positive valuation and earnings call sentiment provide uplift; technicals show mixed short-term strength amid overbought risks.

Positive Factors

Revenue and electrification growthStrong revenue growth combined with broad electrification adoption supports product relevance and future demand. Increasing electric-vehicle penetration can improve Renault’s competitiveness as European customers and regulation shift toward lower-emission vehicles, while new products sustain volume momentum.

Negative Factors

High leverage and weaker equity cushionThe sharp increase in debt relative to equity leaves Renault with less balance-sheet flexibility if vehicle demand or profitability weakens. Greater leverage can constrain investment choices, increase financial sensitivity, and make the recovery more dependent on sustained operating cash generation.

Renault SA (RNLSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $8.87B
Dividend Yield: 8.92%
Average Volume (3M): 68.16K
Price to Earnings (P/E): 8.4
Beta (1Y): 0.72
Revenue Growth: 14.11%
EPS Growth: ―
Country: US
Employees: 100,541
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Manufacturers

Renault SA Business Overview & Revenue Model

Company Description

Renault SA engages in the design, manufacture, sale, repair, maintenance, and leasing of motor vehicles in Europe, Eurasia, Africa, the Middle East, the Asia Pacific, and the Americas. The company operates through Automotive, Sales Financing, and Mob...

How the Company Makes Money

Renault primarily makes money by selling vehicles (passenger cars and light commercial vehicles) to retail customers and fleet buyers through its distribution network, with revenue recognized from the delivery of new vehicles and, where applicable, a...

Renault SA Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q2-2026)|% Change Since:-0.37%|Next Earnings Date:Jul 26, 2023

Earnings Call SentimentPositive

The call presented a predominantly positive operational and commercial momentum: solid H1 revenue growth (+10%), strong electrification progress, robust LCV EV growth (+48%), and a material contribution from Mobilize Financial Services (EUR 753m) underpinning profitability and cash. Management reconfirmed full-year guidance (circa 5.5% operating margin, ≈EUR 1bn automotive free cash flow) and highlighted concrete technology and procurement gains. Offsetting this optimism are meaningful near‑term headwinds — notably a EUR ~600m raw material and inflation impact (with ~EUR 400m expected in H2), ongoing pricing pressure and mix headwinds (Euro 6e‑bis costs), and localized credit risk in South America. Overall, achievements and strategic momentum outweigh the challenges, though H2 execution will be critical to offset significant cost inflation.

Positive Updates

Strong Revenue Growth

Group revenue grew by +10% in H1 2026 versus H1 2025, driven by new product momentum and international launches.

Negative Updates

Raw Materials and Inflation Headwind

Management expects roughly EUR 600 million negative impact from raw materials and inflation for the full year; ~EUR 200 million occurred in H1 with an estimated ~2x impact in H2 (≈EUR 400 million), i.e., stronger cost pressure in the second half.

Company Guidance

Renault confirmed full‑year 2026 guidance of circa 5.5% operating margin and automotive free cash flow of ~EUR 1.0bn (after H1 delivered revenue +10%, operating margin 5.2% and automotive FCF >EUR 600m); Mobilize FS is expected to pay ~EUR 350m of dividends this year (EUR 250m in H1, ≈EUR 100m in H2) and ~EUR 500m p.a. on average over the midterm; the group still assumes a ~EUR 600m full‑year headwind from raw materials & inflation (≈EUR 200m in H1, with roughly twice the impact in H2), expects H2 CapEx & capitalized R&D to be slightly higher than last year, foresees a modest uptick in margin in H2 (in the high‑5% area but likely the lower half of the 5.3–5.7% range), and reiterated structural targets including ~EUR 400 savings per vehicle, a 20% reduction in future manufacturing costs and continued delivery of product‑led volume/mix improvements (order book ~2.1 months).

Renault SA Financial Statement Overview

Summary

Renault SA shows moderate revenue growth but significant concerns in profitability, with a net loss in 2025, high leverage, and declining cash flows, indicating financial risks and instability.

Income Statement

35Negative

Balance Sheet

40Negative

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	60.53B	57.92B	56.23B	52.38B	46.39B	41.66B
Gross Profit	7.28B	11.05B	11.73B	10.96B	8.27B	6.87B
EBITDA	-5.90B	-5.64B	5.10B	6.39B	7.59B	4.80B
Net Income	957.12M	-10.50B	752.00M	2.20B	-354.00M	888.00M
Balance Sheet
Total Assets	124.03B	121.01B	129.37B	121.91B	118.32B	113.74B
Cash, Cash Equivalents and Short-Term Investments	21.27B	19.28B	22.09B	20.20B	22.36B	22.82B
Total Debt	72.33B	68.94B	70.27B	65.08B	14.91B	15.94B
Total Liabilities	101.96B	98.71B	98.26B	91.28B	88.78B	85.85B
Stockholders Equity	20.55B	20.79B	30.31B	29.75B	28.95B	27.32B
Cash Flow
Free Cash Flow	2.05B	-705.00M	4.20B	1.40B	929.00M	-277.00M
Operating Cash Flow	5.01B	2.34B	7.16B	4.46B	3.61B	2.41B
Investing Cash Flow	-3.67B	-3.30B	-2.04B	-2.23B	-3.29B	-1.62B
Financing Cash Flow	600.15M	-1.33B	-3.23B	-3.08B	-478.00M	-629.00M

Renault SA Technical Analysis

Technical Analysis SentimentNeutral

Last Price6.16

Price Trends

50DMA6.24Negative

100DMA6.24Negative

200DMA6.51Negative

Market Momentum

MACD-0.01Negative

RSI54.69Neutral

STOCH88.36Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNLSY, the sentiment is Neutral. The current price of 6.16 is above the 20-day moving average (MA) of 6.01, below the 50-day MA of 6.24, and below the 200-day MA of 6.51, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 88.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RNLSY.

Renault SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

RNLSY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	62Neutral	$230.24B	8.68	11.67%	3.21%	3.88%	4.59%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSLA	61Neutral	$1.58T	407.90	3.76%	―	8.30%	-39.19%
RNLSY	58Neutral	$8.96B	8.45	4.64%	8.92%	14.11%	―
HMC	57Neutral	$44.04B	-46.26	-1.40%	4.26%	0.81%	-128.78%
GM	56Neutral	$73.73B	20.35	6.32%	0.77%	-0.26%	-11.45%
F	45Neutral	$48.85B	-6.43	-21.35%	4.76%	-1.38%	-252.96%

* Consumer Cyclical Sector Average

Performance Comparison

RNLSY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RNLSY	Renault	6.23	-1.18	-15.89%
F	Ford Motor Company	12.60	0.38	3.11%
GM	General Motors Company	89.94	23.64	35.66%
HMC	Honda Motors	34.29	3.58	11.66%
TSLA	Tesla, Inc.	403.82	-40.44	-9.10%
TM	Toyota Motor Corp Ltd Ord	195.83	-8.06	-3.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 04, 2026

Renault SA AI Stock Analysis